In the context of a constant devaluation of the local currency, the peso, and a growing inflation which in 2023 was over 211%, the Central Bank of Argentina (BCRA) has approved the issuance of new banknotes worth 10,000 and 20,000 pesos. Currently the highest denomination note is the 2,000 peso one, equivalent to just over 2 euros at the official exchange rate.
The objective, we read in a note, is to simplify the transactions that currently force users to use large quantities of banknotes even for the most common purchases, and to make the logistics of the financial system more efficient by allowing a significant reduction in the costs of transport of banknotes.
However, the new banknotes will not be available to the public until June and at the current rate of inflation the new denominations may already be insufficient.
With the latest official data published yesterday, Argentina also overtook Venezuela to become the country in the region with the highest inflation in the region. The price index reached 211.4% on an annual basis in December after recording an increase of 25.5% on a monthly basis, the highest increase recorded in the year.